A survey has shown that German consumers are becoming more confident about the future and more willing to part with their hard-earned cash.
The GfK consumer confidence index rose to an estimated 3.5 points in August from a revised 3.0 in July, the GfK institute said in a statement.
A sub-index measuring consumers' willingness to buy rose dramatically to 25.1 points from 14.5 points in July and from minus 26.2 in August 2008.
The institute said low inflation had made consumers more eager to rush out and make purchases, as well as a relatively stable labour market, despite the economic crisis.
Unemployment figures would play a key role in the future development of consumer sentiment, the GfK institute said.
The survey is the latest to suggest that Europe's top economy could be rebounding from its worst slowdown in recent history. A study by Ernst and Young published in Die Welt newspaper showed that two out of three firms in Germany believe the economy will improve by 2010, rising to nearly eight in ten companies seeing a brighter future by 2011.
On Friday, a closely-watched survey by the Ifo institute, measuring the mood among German firms, rose for the fourth month running in July. But the government still sees the German economy - one of the world's top exporters - shrinking by a record 6% this year.
